A Storm Hits After You Sign the Contract. Who Pays in Florida?

The contract is signed. Then a storm comes through. The roof lost shingles, a tree came down, or water got inside. Two questions come up fast. Who pays for this? And is the sale still on?

This guide walks through what the most common Florida contract says, what to do in the first days after a storm, and the ways a sale can move forward. It is general information, not legal or insurance advice. Your own contract and your own policy control what happens, so a Florida real estate attorney and a licensed insurance agent should review them.

Who Carries the Risk Before Closing

The contract decides. Most Florida home sales use forms from Florida Realtors and The Florida Bar. One is the AS IS Residential Contract for Sale and Purchase. A 2026 article by a Florida attorney explains that under section 18(M) of both Florida Realtors/Florida Bar contracts, the seller bears responsibility for damage until closing (RASM, July 2026).

The 1.5% rule

Florida Realtors describes the risk of loss clause in the July 2024 AS IS form this way (Florida Realtors):

Here is the math on a $300,000 sale. 1.5% is $4,500. If the repair estimate is $3,000, the seller pays for the repair and the deal moves ahead. If the estimate is $20,000, the buyer can close and receive $4,500, or cancel.

Damage over the 1.5% line gives the buyer a way out, not a duty to leave. Buyers and sellers in that spot can also agree on a new price or repair plan in writing.

Other Contract Terms That Matter in Storm Season

Force majeure

A hurricane can be a force majeure event under section 18(G). Florida Realtors says that when this clause applies, certain time periods, including the closing date, can be extended for a reasonable time up to 7 days after the event no longer prevents performance. If the event prevents performance for more than 30 days past the closing date, either party may cancel (Florida Realtors).

Access and walk-through

Under section 18(L), the seller must, with reasonable notice, give the buyer utilities and access for appraisals and inspections, including a walk-through, or a follow-up walk-through if needed, before closing (Florida Realtors). Expect the buyer to want a second look after a storm.

The inspection period

The AS IS contract gives the buyer an inspection period. A Florida attorney writing in 2024 explains that during that window the buyer can notify the seller of termination and get a full refund of the deposit under the standard contract (Cape Coral Breeze). So if a storm hits during the inspection period, the buyer can usually cancel for any reason.

Insurance pauses before a storm

A buyer with a loan needs insurance to close. When a tropical storm or hurricane watch or warning is issued for any part of Florida, Citizens Property Insurance goes under a binding suspension. During that time, agents may not bind new coverage or increases in coverage (Citizens). Private insurers set their own rules. A pause like this can push a closing back even if the house is fine.

Your Insurance Claim While the House Is Under Contract

Until closing, the house is yours, and your policy is the one that covers it. Do not cancel your policy because you signed a contract. A few Florida rules to know:

• Report the damage on time. Under Florida Statute 627.70132, notice of a new or reopened property claim must be given within 1 year after the date of loss. A supplemental claim has 18 months.
• Know your hurricane deductible. Florida insurers must offer hurricane deductible options of $500, 2%, 5% or 10% of the policy limits (Florida Department of Financial Services). On $300,000 of dwelling coverage, a 2% deductible is $6,000. The same page says hurricane coverage does not include flooding. Flood needs a separate flood policy.
• Expect the lender on the check. If you have a mortgage, your mortgage company may be listed as a co-payee on the claim check (Homeowner Claims Bill of Rights).
• Know the timelines. The same state guide says the insurer must acknowledge your claim within 7 days. Within 60 days, you should receive payment, payment of the undisputed part, or a denial. Mediation through the Department of Financial Services may be available if you disagree.

Who keeps claim money if the sale closes before the claim is paid is a question for your contract and your attorney. Put any agreement about it in writing.

Steps to Take If a Storm Hits Mid-Contract

1. Stay safe first. Do not go into a damaged house until it is safe.
2. Take photos and video. Get every room, the roof line, fallen trees and any water lines on walls. Date them.
3. Limit further damage. Tarp the roof or dry out wet areas if you can do it safely. Ask your insurer what temporary repairs it expects, and keep every receipt.
4. Call your insurer. Open a claim and write down the claim number.
5. Tell the buyer in writing. Send what you know through your agent, title company or attorney. If water came in, remember that Florida’s flood disclosure law requires a seller to disclose known flood damage during ownership, flood insurance claims and flood aid, such as FEMA help. That form is given at or before the contract is signed, so ask your attorney how to handle damage that happens after.
6. Get a repair estimate. The 1.5% rule depends on the cost of repair, so a written estimate from a licensed contractor matters.
7. Sign a written addendum for any new deal. A new price, a credit, a later closing date or a repair plan should be in a signed addendum. A Florida real estate attorney can draft or review it.

For more on selling a house that already has storm damage, see our guide to selling a storm-damaged house in Florida.

Ways to Keep the Sale Moving

When damage happens under contract, sellers and buyers usually land on one of these:

• Repair before closing. Works for small, quick fixes.
• Escrow the repair money. For damage at or under the 1.5% line, the AS IS form calls for 125% of the estimate held in escrow when repairs are not done by closing (Florida Realtors).
• Lower the price or give a credit. The buyer handles repairs after closing. A lender may limit how a credit can be used, so check with the buyer’s loan officer.
• Close as is with the 1.5%. If damage is over the line, the buyer can choose this.
• Cancel and start over. If the buyer cancels, you can repair and list again, or sell to a buyer who takes the house in its current condition.

A storm can also change your insurance going forward. If your carrier later sends a non-renewal, read our guide on Florida home insurance non-renewal options.

Three Ways to Sell After Storm Damage

If the first buyer walks away, or you would rather not manage repairs, here are three options, in this order. For a side by side view, see cash offer vs listing vs selling on terms.

1. Cash, as is

We may buy the property as is with our own funds, or our contract may be assigned to another buyer; your written offer will say which. We do not need a mortgage lender to approve the house or a buyer’s insurance policy before closing, so a damaged roof or an open claim is less likely to hold up the sale. We inspect the house and make an offer based on what we see. If a storm hits while you are under contract with us, our contract spells out what happens. Ask us to show you that clause before you sign.

Subject to qualification, property inspection, and transaction terms.

2. Creative terms: subject-to or seller financing

In a subject-to sale, the buyer takes the deed and makes the payments on your existing mortgage. The loan stays in your name. The lender can call the loan due under the due-on-sale clause. Both sides should use a real estate attorney. Storm damage makes the paperwork more important, because it should say who handles repairs, who holds the insurance policy and where any claim money goes. With seller financing, you act as the bank and the buyer pays you over time, so your attorney should require the buyer to insure and repair the house.

Subject to qualification, property inspection, and transaction terms.

3. A 1% full-service listing

If the house can be repaired and will appeal to buyers on the open market, a listing on the MLS through our licensed brokerage partner may bring the highest price. Our partner is a separate licensed Florida brokerage. The listing fee is 1%. Buyer agent compensation is separate and negotiable. Keep your repair records, permits and claim papers ready, because a financed buyer will need to insure the house.

Subject to qualification, property inspection, and transaction terms.

If you own in Charlotte County, our Port Charlotte selling page covers local options.

How HOMKEYS Can Help

HOMKEYS LLC buys homes across Florida from our office in Brickell, Miami. We show you cash, terms and a 1% listing side by side, in writing, and every closing goes through a licensed Florida title company. We cannot quote a price before we see the house and the damage. Subject to qualification, property inspection, and transaction terms.

Frequently Asked Questions

Not legal or insurance advice. This guide is general information about Florida home sales. Contract forms, laws and insurance rules change, and every contract and policy is different. Talk with a Florida real estate attorney and a licensed insurance agent about your own case before you sign anything.

⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal, tax or insurance advice. Talk with a Florida real estate attorney or licensed insurance agent about your situation.